Tax Tip: 2014 Taxes Start Today!
Most people are breathing a sigh of relief to have 2013 taxes behind them. However, in some ways, 2014 taxes literally start today. First of all, the first quarter estimated tax payment for 2014 is due on 4/15. This means people who have to pay taxes throughout the year, most notably independent contractors and sole proprietor business owners, have to make their first payment today. Next, it is very hard to perform tax planning after the fact. At this time, with the 2013 taxes fresh in mind, could be the best time to look at tax saving opportunities. These strategies can then be implemented during the year. Lastly, your CPA or tax preparer should have just completed asking you for all the information needed to prepare your return. This is the time to make sure you take all the receipts and documentation you used to gather this information and store it in a safe and organized place in case there is ever an audit. Furthermore, now that you know what was needed for 2013 you can continue to keep more diligent and complete records for 2014.
Filing a tax return and paying taxes can be intimidating and scary processes to some people. Although the tendency may be to ignore taxes until next year, being proactive now can make 2014’s tax process easier and more manageable. If you have questions about your tax situation, preparing for 2014 taxes, or how to organize in case you are ever audited, contact us at Hone Maxwell LLP. Also, you can follow us on twitter @HMLLPTax or facebook at www.facebook.com/HoneMaxwellLLP for more tax tips and the latest updates on tax news.